Another Strong Start For Active ETFs | ETF Trends

Actively managed ETFs continue to gain traction. After a strong 2023, active ETFs gathered 34% of the net inflows in the first two months of 2024. Impressive for an asset category that still represents 6% of overall industry assets. 

Seven active ETFs gathered more than $1 billion in January and February. The BlackRock U.S. Equity Factor ETF (DYNF) led the charge with $3.2 billion of net inflows. DYNF and one of its siblings, the BlackRock Flexible Income ETF (BINC) benefitted from January model allocation changes made by BlackRock. 

Meanwhile, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) and the JPMorgan Equity Premium Income ETF (JEPI) pulled in $1.7 billion and $1.1 billion. These two covered call ETFs were popular in 2023 and seem poised for continued growth. According to VettaFi, advisors are increasingly considering implementing covered call strategies.  

A Janus Henderson CLO ETF, an Avantis small cap value equity ETF, and a more traditional JPMorgan global equity ETF also gathered over $1 billion. 

VettaFi Equity Symposium – March 13 

However, more than 600 ETFs had net positive cash flows in the first two months of 2024. On March 13, during the VettaFi Equity Symposium, advisors will have a chance to hear from a few managers of under-the-radar active equity ETFs. 

At 1120am, my colleague Tom Lydon will moderate a discussion titled “Valuation Matters. Know What You Own”. One of the speakers will be Jodi Love, lead portfolio manager of the T. Rowe Price Small-Mid Cap ETF (TMSL). TMSL launched in June 2023 and has approximately $85 million in assets. The fund focuses on companies with improving earnings and cash flow and strong balance sheets. Recent holdings include Stanley Black & Decker, Textron, and Western Digital. A VanEck ETF product manager will be joining to talk about valuation-aware smart-beta index ETFs.    

Non-Tech Active Thematic ETF 

At 11:40, I will be moderating a session titled “Thematic ETFs: Examining Investment Trends in 2024”. Most thematic ETFs are technology focused, such as those tied to artificial intelligence or cybersecurity. However, the TCW Transform Supply Chain ETF (SUPP) is different. At the symposium, manager Eli Horton will be speaking about the industrials and materials focused ETF tied to reshoring supply chains to North America. Companies like CSX, Martin Marietta Materials, and Waste Management were recent top positions for this $20 million, one-year old ETF.  

See related: ETF of the Week: TMSL 

A DWS executive will also be talking with us about index-based thematic ETFs. 

At 1225pm, we will have a session specifically about active investing. The focus will be on how advisors can harness advantages over passive approaches. Motley Fool Asset Management’s chief investment officer Bryan Hinmon will be part of the discussion. The Motley Fool Small-Cap Growth ETF (TMFS) focuses on high-quality growth companies and takes a lower turnover, concentrated approach. Recently the $85 million TMFM owned just 35 positions, including Axon Enterprise, Gentex, and Toast.

Tom and I hope to see you on March 13 as VettaFi dives into equities with the help of managers of actively managed ETFs. Register today. 

For more news, information, and analysis, visit VettaFI | ETF Trends.